TEE2 2024-25
GRADE 9i – Paper 1
SUBJECT: Accounting (0452)
DATE:
/ / 2024
M.M: 35
TIME: 2.15 Hrs.
INSTRUCTIONS
• There are thirty questions on this paper. Answer all questions.
• For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet.
• Write in soft pencil.
• Do not use correction fluid.
• You may use a calculator.
INFORMATION
• The total mark for this paper is 30.
• Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
• Any rough working should be done on this question paper.
Q1
A
B
C
D
Q2
A
B
C
D
Q3
A
B
C
D
Q4
A
B
C
D
Q5
A
B
C
D
Q6
A
B
C
D
Q7
A
B
C
D
Q8
A
B
C
D
Q9
A
B
C
D
Q10 A
B
C
D
Q11 A
B
C
D
Q12 A
B
C
D
Q13 A
B
C
D
Q14 A
B
C
D
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Q15 A
B
C
D
Q16 A
B
C
D
Q17 A
B
C
D
Q18 A
B
C
D
Q19 A
B
C
D
Q20 A
B
C
D
Q21 A
B
C
D
Q22 A
B
C
D
Q23 A
B
C
D
Q24 A
B
C
D
Q25 A
B
C
D
Q26 A
B
C
D
Q27 A
B
C
D
Q28 A
B
C
D
Q29 A
B
C
D
Q30 A
B
C
D
Q31 A
B
C
D
Q32 A
B
C
D
Q33 A
B
C
D
Q34 A
B
C
D
Q35 A
B
C
D
3
1
What is prepared by a book-keeper?
A
appropriation account
B
cash book
C
income statement
D
statement of financial position
2
Which item is an asset?
A
an amount owing by credit customers
B
an amount owing to credit suppliers
C
interest accrued on bank loan
D
rent received in advance from tenant
Fatima required additional finance for her business and borrowed funds from Ali. This was
deposited into the business bank account.
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How should Fatima record this?
account to be debited
account to be credited
bank
Ali (loan)
bank
Ali (trade payable)
C
Ali (loan)
bank
D
Ali (trade payable)
bank
A
B
4
On 1 March, a business owed its suppliers $9500. During March, the following transactions took
place.
$
goods purchased on credit
10 000
goods returned to suppliers
200
cheques paid to suppliers
8 900
cash discounts received
100
How much did the business owe its suppliers on 31 March?
A
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$800
B
$1000
C
$10 300
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D
$10 500
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5
Which document from a supplier reduces the amount owed by a customer?
A credit note
B debit note C
invoice
D
6
7
statement of account
What is recorded in a petty cash book?
A
all cash transactions
B
cash purchases and expenses only
C
purchases of all small value items
D
small cash transactions
Jacob settled the account of Ahmed, a credit supplier. He made the following entries on the credit
side of his cash book.
discount
$
Ahmed
5
cash
$
bank
$
195
Which entries did Jacob make on the debit side of Ahmed’s account?
$
8
A
bank
195
B
bank
200
C
bank
discount allowed
195
5
D
bank
discount received
195
5
The total of the debit column of a trial balance was more than the total of the credit
column. One account balance had been entered in the wrong column.
Which one was it?
A
cash
B
discount received
C
drawings
D
irrecoverable debts
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9
Davi prepared the following journal entry to correct an error.
debit
$
Samir
credit
$
40
Samuel
40
Which error was being corrected?
A
Cash paid to Samir had been credited to Samuel.
B
Cash received from Samuel had been debited to Samir.
C Goods bought from Samir had been credited to Samuel.
D
Goods sold to Samir had been debited to Samuel.
10 A suspense account was opened with a credit balance of
$840. Which error caused this?
A
A cheque for $420 received from a customer was debited to his account.
B
Discounts allowed, $420, was debited twice in the discounts allowed account.
C
Goods costing $420, taken by the owner of the business for own use, were credited to his
drawings account.
D
Rent received, $420, was credited twice in the rent receivable account.
11 A trader calculated her profit for the year at $14 800. The following errors were then
discovered. No entry had been made for $200 wages accrued.
The insurance expense included a prepayment of $90.
What is the correct profit for the year?
A
$14 510
B
$14 690
C
$14 910
D
$15 090
12 Which item should be treated as capital expenditure?
A
the annual depreciation on office premises
B
the cost of building an office extension
C
the cost of repairing office equipment
D
the purchase of a new computer for resale
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13 On the last day of the financial year, Khalid purchased office fittings, $900. This was incorrectly
recorded as office expenses, $90.
Khalid does not charge depreciation in the year of purchase.
What was the effect on the profit for the year?
A
overstated by $810
B
overstated by $990
C
understated by $90
D
understated by $900
14 Aggie is a trader. She uses the following methods of depreciation for different types of
non-current asset.
straight-line at 20% per annum
reducing balance at 25% per annum
revaluation
On 1 January year 1, Aggie purchased small items of equipment costing a total of $2400 and
fittings costing $8000.
On 31 December year 2, Aggie estimated that the equipment was worth 70% of its original cost.
The statement of financial position showed the net book value of equipment as $1680 and fittings
as $4800.
Which depreciation methods has Aggie used?
equipment
fittings
A
reducing balance
straight-line
B
revaluation
reducing balance
C
revaluation
straight-line
D
straight-line
revaluation
15 Abeo prepares financial statements to 31 December each year.
Abeo bought machinery for $40 000 on 1 January year 1. He charges depreciation on machinery
at 20% per annum using the reducing balance method. Depreciation is charged in the year of
purchase but not in the year of disposal.
On 1 January year 3, the machinery was sold for $22 000.
Which journal entry records the profit or loss on disposal of the machine?
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debit
$
A
B
C
D
disposal of machinery
income statement
2000
disposal of machinery
income statement
3600
income statement
disposal of machinery
2000
income statement
disposal of machinery
3600
credit
$
2000
3600
2000
3600
16 Why would a business record the amount owing by a credit customer as an irrecoverable debt?
A
The customer has gone out of business.
B
The customer has liquidity problems.
C
The customer is making a loss.
D
The customer is not satisfied with the goods.
17 Anji maintains a provision for doubtful debts at 5% of the trade receivables at the end of each
financial year. At the start of the financial year, the trade receivables were $2000. At the end of the
financial year, the trade receivables were $4500.
Which entry would be made in the income statement for the financial year?
A
$125 as an expense
B
$125 as an income
C
$325 as an expense
D
$325 as an income
18 Which businesses do not prepare a trading account section of an income statement?
A
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1
furniture store
2
insurance company
3
newsagent
4
toy shop
5
window-cleaner
1 and 2
B
2 and 5
C
3 and 4
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D
3 and 5
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19 A business provided the following information.
$
current assets
25 000
current liabilities
12 000
non-current assets
18 000
non-current liabilities
21 000
What was the capital of the business?
A
$10 000
B
$22 000
C
$31 000
D
$43 000
20 A trader bought a machine for use in the business. He paid a part of the cost in cash and agreed
to pay the remaining part in 15 months’ time.
In addition to the non-current assets, which items in the statement of financial position will
increase as a result of this transaction?
A
B
C
D
current
assets
current
liabilities
non-current
liabilities
./
.
/
x
x
.
./
/
.
x
/
./
x
x
./
21 Stephanie’s major competitor has invested in a new machine for making goods more cheaply.
Stephanie knows this will affect her sales but did not record this in her accounting records.
Which accounting principle is Stephanie applying?
A
going concern
B
materiality
C
money measurement
D
prudence
22 23Which task would be carried out by a book-keeper?
A
comparison of financial statements between years
B
preparation of financial statements
C
provision of information for decision-making
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D
recording financial transactions
23 What is the accounting equation?
A assets = capital – liabilities
B
assets = liabilities – capital
C
assets – liabilities = capital
D
assets + capital = liabilities
24 Sarah sold goods on credit to Zafar.
How was this recorded in Sarah’s ledgers?
general ledger
sales ledger
A
credit
sales account
debit
Zafar account
B
debit
sales account
credit
Zafar account
C
credit
Zafar account
debit
sales account
D
debit
Zafar account
credit
sales account
25 Omar sent a credit note to Miriam for goods returned.
How would Miriam record this transaction?
account to be debited
account to be credited
purchases returns
Omar
B
sales returns
Miriam
C
Omar
purchases returns
D
Miriam
sales returns
A
26 The discount column on the debit side of a trader’s cash book totalled $1300 and the discount
column on the credit side totalled $700.
How much discount did the trader receive?
A
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$600
B
$700
C
$1300
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D
$2000
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27 Kai bought office equipment from Meena and paid immediately by bank transfer.
How should Kai record this in his accounting records?
account to be debited
account to be credited
A
bank
Meena
B
bank
office equipment
C
Meena
bank
D
office equipment
bank
28 Jabari maintains a petty cash book using the imprest system. The imprest is restored at the end of
each month.
Which amount restores the imprest at the end of a month?
A the amount left in petty cash less the total of vouchers received
B the amount left in petty cash plus the total of vouchers received
C
the imprest amount less the total of vouchers received
D
the total of vouchers received
29 What is an example of a compensating error?
A
A payment for office equipment repairs was debited to the office equipment account.
B
A purchase of goods from C Jones was credited to the account of C Johns.
C
The sale of goods, $65, to A Aziz was entered in the books as $56.
D
The wages account was undercast by $100 and the rent account was overcast by $100.
30 The following payments were made by John when he purchased a machine.
$
purchase of machine
10 000
delivery charge
1 200
insurance
800
installation charge
900
pre-paid maintenance charge
400
How much should have been debited to the machinery account?
A
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$10 900
B
$11 200
C
$12 100
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D
$12 500
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31 The financial year of Yeung ends on 31 March. On 1 April 2021, he purchased a machine for
$4000.
He estimated that it would have a useful working life of 3 years and a residual value of $100. Yeung
uses the straight-line method of depreciation.
The machine was sold on 1 April 2022 for $1500. What
was the loss on disposal?
A
$1100
B
$1200
C
$2400
D
$2500
32 On 1 April 2021, commission receivable, $210, was outstanding. Commission received during the
year ended 31 March 2022 amounted to $4850.
Which journal entry should have been made at the end of the financial year on 31 March 2022?
debit
$
A
B
C
D
commission receivable
income statement
4640
commission receivable
income statement
5060
income statement
commission receivable
4640
income statement
commission receivable
5060
credit
$
4640
5060
4640
5060
33 Which statement about a debts recovered account is correct?
A
The account is used when an amount, previously written off, is received from a customer.
B
The account is used when doubtful debts are recovered.
C
The balance of the account is debited to the income statement at the end of the year.
D
The balance of the account is shown in the statement of financial position.
34 At the end of his financial year, Marek was owed $200 for interest on a loan he had made to an
employee. He recorded this in his financial statements.
How did the interest on this loan affect Marek’s profit for the year and where was it recorded in
his statement of financial position?
profit for the year
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statement of
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A
decreased
current assets
B
decreased
current liabilities
C
increased
current assets
D
increased
current liabilities
35 Which accounting policy requires that the information in financial statements is free from
significant errors and bias?
A
comparability
B
consistency
C
reliability
D
understandability
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